It’s widely understood that Veterans make exceptional business owners, because they possess many of the essential qualities and characteristics that ensure long-term success: commitment, discipline, resilience, integrity, personal sacrifice, teamwork and drive.
However, the overwhelming majority of business owners, including many Veterans, cannot — and will not — qualify for a conventional bank loan, because they fail to meet the minimum applicant requirements that typically includes:
- Exceptional personal and business credit scores.
- No gaps in their credit history.
- At least two years of established business history.
- Sufficient collateral to secure a business loan.
Fortunately, banks are not the only source of small business loans for Veterans who not only need a business loan, but DESERVE one after honorably serving our country. Here are three viable and popular alternative small business loans for Veterans:
Working Capital Loans
A working capital loan is a cash infusion with a fixed payment (usually monthly). Loan durations can range from a few months to several years, and from less than $10,000 to well over $1 million.
Unlike a conventional bank loan, a working capital loan is unsecured, which means that Veterans do not have to pledge their personal and/or business assets. In addition, impaired or bad credit scores are fine, and only 2-3 months of business history is sufficient — compared to 2+ years with banks. Veterans are also free to choose how they spend the loan.
Merchant Cash Advance
Veterans who run a retail business in which the majority of transactions are conducted through payment card (credit and debit), may find that a merchant cash advance is the funding solution they need.
Technically, a merchant cash advance isn’t a business loan. Rather, it’s an advance (hence the name) on future payment card sales. At the end of each business day, a small agreed-upon percentage of payment card sales are automatically remitted to the lender and applied to the loan balance. This continues until the loan is paid off.
Equipment financing is another popular type of small business loans for Veterans. While these are secured loans, the collateral is typically the to-be-purchased equipment itself — which means that Veterans don’t have to pledge additional personal or business assets.
As with both working capital loans and merchant cash advances, the application process for equipment financing is swift, and typically takes a matter of days from initial application, to when the approved funds are available for spending.
As a Veteran, you know better than anyone that there is a categorical difference between words and actions. While banks do a lot of talking, National Business Capital takes action by proudly offering a full range of small business loans for Veterans — including (but not limited to) those listed above.
To learn more, contact our team today. It would be our privilege to answer your questions, and help you make an informed decision that is right for your business. Your consultation with us is free.